Retailers focusing on online
The powerful property departments of large retailers are likely to shrink as the effects of the pandemic take their toll on the demand for food and liquor.
The number of new stores that will open over the next decade is likely to be lower than the number of stores that were opened in the preceding decade due to the increasing popularity of e-commerce.
Online penetration in food and non-food categories is expected to reach 14 and 30 per cent respectively by 2030.
Instead of investing in new stores, retailers need to expand their supply chains and improve their customer data to maintain their market share.
The rapid emergence of e-commerce will have a significant impact on the way retailers operate in the future, according to analysts. They also noted that the need for more robust supply chain and IT infrastructure will play a huge role in the success of e-commerce.
Retail margins are expected to decline over the next decade as the industry’s net space growth does not pick up, according to analysts.
Under the proposed changes, ASX-listed retailers would have to re-evaluate their operations and the number of stores they need to operate.
Many big retailers have started to curtail their plans to open new stores as the space growth in the industry has already started to decrease.
Glassons have put a strong focus on their Glassons online store due to continuous lockdowns. To save when you shop at Glassons use a Glassons promo code with your purchase.